Gas prices show 26-cent range across Carlsbad

CARLSBAD >> Summer road trips are looking to be a cost effective vacation option, as gasoline prices show no immediate sign of a drastic increase.

The national average price for regular unleaded gasoline has continued to remain steady over the last month, with only slight decreases and increases.

A resolution of regional refinery issues and the fact that the global price of crude oil continues to stay low has helped keep gasoline prices steady.

According to the American Automobile Association, on Monday the average price of unleaded gas was $2.39 per gallon, which is about five cents per gallon less than a month ago.

AAA, also reported the state average price of unleaded gas in New Mexico is at $2.23 per gallon, also five cents per gallon less than a month ago.

Gas prices are significantly lower, compared to this time last year, despite staying over the $2 per gallon mark.

Last year the average price of unleaded gas in New Mexico was at $3.44, which shows that consumers are saving $1.19 per gallon at the pump today, according to AAA.

However, the potential for those gas prices to rise is still possible, since the price of gas remains influenced by the global price of crude oil, said New Mexico Oil and Gas Association Vice President and director of communications Wally Drangmeister.

The prices of gas and oil can quickly increase or decrease drastically, especially if global factors such as Greece's economy or unrest in the Middle East, said Drangmeister.

Another factor, is local competition in a city, and how different branded gas companies decide the price of gasoline in the area.

The price of unleaded gas in Carlsbad list a price range difference of 26 cents; its lowest pricing at $2.13 a gallon and highest pricing at $2.39 a gallon, according to AAA.

"There's two things that drives gasoline prices. One is the cost of the goods to me (the distributor), and two is competition," said Ruben Baca, head of the New Mexico Petroleum Marketers Association.

Baca explained that the difference in gas prices in a city can vary based on who a gas station has a supply contract with.

"Major or branded companies, like Chevron and Allon, are tied to a supply contract," Baca said. "Meaning that whatever they sell to me (the distributor), I have to buy it from them no matter what the price, so if my supplier's price goes up, then my price of gas will go up."